Mozambique launches $500 million electrification program based on hydro, solar, microgrids

Mozambique’s Fundo de Energia (FUNAE), a public institution under the Ministry of Mineral Resources and Energy, will provide $500 million for an electrification program based on hydro and solar energy, as well as PV microgrids.

In total, 332 villages will be electrified throughout the country using hydropower mini-grids with a combined capacity of about 1.01 GW. Solar will be implemented through 343 projects, including 10 mini-grids ranging in size from 1 MW to 3 MW, while another 111 sites will include micro-grids with a capacity between 1 kW and 100 kW.

According to FUNAE, more than 3.7 million Mozambicans benefited from off-grid solar systems that were deployed from 2005 to 2014. Eleven cities, 669 schools, 623 health centers and 77 public buildings were electrified through off-grid PV installations during the period.

In Mozambique, there is currently also a large-scale solar project under development by Norwegian solar developer Scatec, Norway’s development finance agency Norfund, and power utility Electricidade de Moçambique (EdM). Power generated by the installation will be sold to EdM under a 25-year PPA. The plant will be constructed close to the city of Mocuba, Zambezia province, and represents the country‘s first step towards solar deployment.